…would
cut demand for electricity from coal — the nation’s largest source of carbon
pollution — but create robust new demand fornatural
gas, which has
just half the carbon footprint of coal. It found that the demand for
natural gas would, in turn, drive job creation, corporate revenue and
government royalties in states that produce it…

States that
produce both coal and natural gas, such as Pennsylvania, would experience an
economic trade-off as diminished coal production was replaced by new natural
gas production.

Thursday, July 24, 2014

This Pittsburgh Post-Gazette story by Laura Legere is a must-read. It reports that Pennsylvania state records show that oil and gas operations have damaged water supplies 209 times since the end of 2007, affecting 77 communities.The story notes that "the number of impacts is small relative to the number of new oil and gas wells drilled during the same time period – nearly 20,000, according to DEP records." That's an overall rate of about 1 percent.The total obviously includes conventional oil and gas wells, in additional to unconventional ones. According to MarcellusGas.org, 8,478 unconventional wells have been drilled or are under development. So, this overview begs some questions - other than an obvious one about why this information has never been made publicly available before.How many of the 209 contamination cases were related to conventional gas development? Unconventional? Is one type more problematic than the other?Is there any relation between the culprit wells and proximity to contaminated water supplies? And what does that say about current setback and water testing requirements?Is any level of contamination "acceptable"? I doubt anyone living in those 77 affected communities would think so. And neither should regulators nor the industry.To be sure, Pennsylvania needs to regulate private water wells. It's one of only two states that doesn't. But some forensic analysis of DEP's data is in order to answer these - and I'm sure other - questions.August 29, 2014 update: The Wall Street Journal reports today that DEP has released some details - there are heavy redactions, from a quick eyeballing of some of the linked info - of what are now 243 cases of contamination. The info is posted here.

Howarth has consistently demonized gas in his work - which, to give him credit, first raised the essential importance of methane emissions. Hone appears to suggest that either we limit
CO2 emissions, or we focus on methane, but not both.

Neither, in my view, are totally correct.

Howarth blurs the essential question of time horizons and methane emissions that Hone clearly explains. Horwath also ignores the
fact that methane
emissions can be minimized
with tough regulations and monitoring – neither of which we have
yet, but can get to with the right political will.

Hone presents a false
choice. We can - and must – limit both CO2 and methane emissions. Now.

ICF’s
report finds that gas
production for the Marcellus and Utica shale plays is projected to grow by 36%,
from 25 bcf per day in the first quarter of this year to 34 billion cubic feet
per day by 2035. Production growth from the Utica wells has been much greater
than anticipated and more growth is expected, ICF says.

The
reason for this huge growth is improvements in drilling and hydraulic
fracturing technology. Longer horizontal laterals, more fracture stages, closer
later spacing, and increases in wells drilled per rig continue to increase
estimated ultimate recovery per well, which is up 19% in the last quarter alone
in the Marcellus and 32% in the Utica.

Exploration
and production companies that extract natural gas from the Marcellus Shale will
benefit more than natural gas producers elsewhere in North America, even if gas
prices weaken, Moody's Investors Services said in a recent report.

The
low-cost, highly productive wells of the Marcellus will continue to be
economic, said Moody's associate analyst Michael Sabella, author of the study."Technological
advancements since the early 2000s have allowed US natural gas producers to
reshape the industry largely through the development of the Marcellus," he
said. "The Marcellus has emerged as one of the most profitable regions in
the US for producing natural gas," he said, noting that "even if
prices return to the weak levels of 2012, producers there will be
rewarded."

…As
takeaway capacity constraints ease, the performance of the producers should
improve…"Pipeline reversals and exports of liquefied natural gas will
create additional investment opportunities for Marcellus producers, even while
offering only marginal benefits for gas producers outside the region,"
Sabella said. "Marcellus producers will remain competitive in the
fledgling US LNG industry, and production growth will receive another boost
once these projects come online."

A Green thing

The tree which moves some to tears of joy is in the eyes of others only a Green thing that stands in the way. Some see Nature all Ridicule and Deformity...and some scarce see Nature at all. But to the eyes of the Man of Imagination, Nature is Imagination itself.

William Blake, English poet (1757-1827)

About Me

John is Director of the Center for Environment, Energy, and Economy and Lecturer in Sustainability at Harrisburg University of Science and Technology. He is a former Senior Fellow and current Advisory Board member at the Kleinman Center for Energy Policy at the University of Pennsylvania, and a consultant. He served as Secretary of the PA Department of Environmental Protection from Jan. 2015-May 2016, and as Secretary of the PA Department of Conservation and Natural Resources from April 2009-Jan. 2011. He is the only person in PA's history to serve as Secretary of both of the state's natural resource agencies. He also served as a two term Mayor of Hazleton, PA, and as an Alternate Federal Commissioner on the Interstate Commission on the Potomac River Basin.
John is a graduate of Bloomsburg University with a degree in economics, and holds a Master of Public Administration degree from Lehigh University.